The Federal Trade Commission (FTC) amended its Telemarketing Sales Rule at the end of 2015 to ban certain forms of abusive payment methods. The amended rule now bans four previously allowed methods of payment that the FTC determined were commonly used in abusive telemarketing operations. The banned forms of payment include: remotely created checks, remotely created payment orders, cash-to-cash money transfers, and cash reload mechanisms. The amendments also require that a description of the goods or services purchased must be included in the verification recording of a consumer’s agreement to purchase them.
Arent Fox monitors the FTC regulatory rules related to payment methods and how they impact telemarketing and e-commerce. For additional information, please contact Anthony V. Lupo, Sarah L. Bruno, or Matthew R. Mills of Arent Fox LLP.